"Inflation is a completely new experience to many current business owners, as we have not had high rates of inflation in almost 30 years. Watch your margins carefully. Worry about growing profits, not just your sales."
"Franchisees also want audited disclosures on vendor kickbacks. Kickbacks from a vendor to a franchisor can significantly raise the price of goods to franchisees, and they are typically undisclosed. They act as a hidden royalty fee."
It said it now expects food costs to rise between 4 and 4.5 percent in the United States and Europe this year. In January, McDonald's said it expected its food costs to rise 2 percent to 2.5 percent this year in the United States.
Burger King CEO John Chidsey announced a grandiose plan to remodel all 12,000+ Burger Kings worldwide to the slick “20/20” design, which he called “contemporary, edgy, futuristic.” Franchisees called it expensive.